The FSCS deposit protection limit has changed
3 minute read
The FSCS deposit protection limit has changed
The FSCS deposit protection limit has changed
3 minute read
What you need to know
From 1 December, the Financial Services Compensation Scheme (FSCS) will protect more of your money if a UK-authorised bank, building society or credit union fails and can't pay back your money. This will go up from £85,000 to £120,000 for each person per bank, building society or credit union.
So, what does this really mean? We’ve put together a few FAQs on this blog to give you a quick run down of everything you need to know.
What is the FSCS?
The FSCS is a service that helps to keep your money safe. It steps in to make sure you get your money back if a bank, building society or credit union fails.
In 2024/25, the FSCS paid out £327m in compensation to 32,634 customers of failed firms1.
The scheme is free and covers a range of protections. You can see them all on the FSCS website.
So, how much of my money is protected?
- Let’s say you had £120,000 of eligible deposits with us. All of your money would be safe and protected.
- But if you had £150,000 with us, £30,000 is unlikely to be protected by the FSCS. This means some of your money could be at risk.
- What about if you had £120,000 with us and £120,000 with another UK financial institution? Again, in this scenario, all of your money with both would be safe and protected.
- But once again, if you had £150,000 with us and £150,000 with another UK financial institution, the £30,000 extra in each would be at risk. This means £60,000 is not safe should both institutions close.
And what about joint accounts?
For a joint account, each person named on the account gets protection up to the limit. This means, if two people share a joint account, the total protected could be up to two times the limit – one for each person.
But remember! If you had money in a joint account with us, and you also had savings in another account with us, your protection would be across all accounts combined.
I have accounts with both Coventry Building Society and The Co-operative Bank. How much protection will I get?
If you have accounts with both of us, your eligible deposits with each will be protected. This is up to the total of £120,000 each.
This is because at the moment, we’re operating under two banking licences.
Do I need to do anything about the limit change?
The short answer is no. But you might want to think about if there’s anything you need to do to protect more of your eligible deposits.
If you have more than £120,000 in one place, you may want to:
- Check your bank: Use the FSCS website to make sure your bank is in the scheme.
- Know the limit: £120,000 per person, per institution is the standard.
- Spread your money out: This could help make sure more of your money is protected.
We’re always here if you need some support
Life can be unpredictable. You might be buying a house, getting a big payment, or saving for the future. Knowing your money is protected helps you feel safe and plan better.
You can find lots of information on the FSCS website as well as on our website. If you feel you need extra support, please call us or visit us in branch. We can help you better understand your protection under the scheme.
Published December 2025
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